L’Oréal expresses interest in acquiring a stake in Armani

French cosmetics giant L’Oréal confirmed on Tuesday its interest in taking a 15-percent stake in the Italian luxury house Armani, a move that aligns with the late Giorgio Armani’s wishes, even as the company proceeds with its $4.6 billion acquisition of Kering’s beauty division.

In an interview with Le Figaro, L’Oréal CEO Nicolas Hieronimus said, “The acquisition of Kering’s beauty activities changes nothing in our intention to be part of Armani.” The statement came just two days after L’Oréal and Kering — the French luxury group behind Gucci — announced L’Oréal’s largest acquisition to date.

The deal with Kering includes the Creed perfume brand and grants L’Oréal future exclusive distribution licenses for Kering’s major Italian labels — Gucci, Bottega Veneta, and Balenciaga — once the current licensing agreement with U.S.-based Coty expires in 2028.

Giorgio Armani, who passed away on September 4, stated in his will that he wanted a leading luxury group to acquire a minority share of his privately held company, estimated by Forbes at $5.6 billion. Potential partners named in his will included LVMH, EssilorLuxottica, and L’Oréal.

Hieronimus said L’Oréal envisions an initial 15-percent investment in Armani, potentially alone or alongside another partner. He emphasized that the recent Kering partnership should demonstrate to Armani that L’Oréal would be a “valuable ally in the luxury sector.”

L’Oréal also released its third-quarter earnings, reporting a 0.5 percent rise in sales to €10.3 billion ($12 billion) — slightly below the €10.4 billion expected by analysts surveyed by Bloomberg. The company’s luxury division, which will integrate the newly acquired Kering brands, recorded a 1.5 percent sales decline for the quarter.

Currently valued at over $240 billion, L’Oréal’s continued expansion underscores its ambition to strengthen its position in the high-end beauty and fashion market.

According to Armani’s will, whichever luxury group secures a stake could later increase its ownership to between 30 and 54.9 percent. If no such deal occurs within three to five years, Armani’s will stipulates that the company should be listed on the stock market.

Hieronimus concluded, “My wish is to see Armani fashion evolve under the leadership of its new managing director, Giuseppe Marsocci, whom I know well.”